Place strategy

USRF maintains growth in year of £30m acquisition

The Urban Splash Residential Fund has reported results through March 2022, during which time it made a profit of £2.2m.

The fund invested over £30m in new acquisitions during the reporting period, growing the portfolio to 252 homes in six UK cities; Manchester, Sheffield, Birmingham, Cambridge, Bristol and Bradford.

The USRF portfolio was 96% occupied at the end of the year. The company said that due to its resilient income stream and steady rental growth, it achieved a constant rate capital increase of 3.3% and an £892,000 increase in its revaluation reserve.

Fund manager Akeel Malik said: “Our appetite for future acquisitions remains and we continue to have additional discussions around raising equity and debt to help us in our ambition to build an institutional-scale portfolio. of designed rental homes across the UK.”

Other highlights include a profit of £2.2m, a 70% increase from the £1.3m recorded in 2021. The results also show growth in net asset value at £90.3m, more than three times the value of £25.2m in its latest annual report. .

The USRF has already identified an acquisition pipeline of over £1 billion through its relationship with regeneration company Urban Splash and other third parties. He said a sustainability-focused strategy will see the fund continue to invest in green homes, as well as offering initiatives such as 100% green energy as standard and the security of inflation-indexed leases from 5 years by default.

Malik concluded, “We will maintain our approach, investing in sustainable and differentiated homes that offer our residents access to great design, in integrated communities, with space inside and out. . I am excited about our next stage of growth and grateful for the continued support of our investors and advisors. »

The Urban Splash Residential Fund was established in June 2017 to acquire homes designed in urban regeneration areas across the UK.

Having raised £150m from institutional and high net worth investors, the fund now owns and manages 252 homes, with a diverse portfolio ranging from studios to four-bedroom townhouses and with an average rent of around £1. £000 per month.

At MIPIM this year, Urban Splash President Tom Bloxham met Location North West to talk about the goal of growing the residential fund into a £3bn portfolio within ten years.